GRABAR LAW OFFICE INVESTIGATES POTENTIAL CLAIMS ON BEHALF OF SHAREHOLDERS OF CAREDX, INC. (NASDAQ: CDNA)
It is alleged that officers and directors of CareDx caused the Company to issue materially false and misleading statements regarding its testing services. Specifically, the Company failed to disclose that certain CareDx officers had engaged in a number of improper and illegal schemes to inflate testing services revenue, including: (i) pushing protocols for surveillance of organ rejection through inaccurate marketing materials and in violation of Medicare standards; (ii) offering extravagant inducements or kickbacks to physicians and other providers; and (iii) improperly bundling expensive testing services with other blood tests as part of the RemoTraC service.
On October 28, 2021, the Company revealed for the first time that CareDx was the subject of at least three government investigations related to its business practices. Specifically, the Company had received: (1) a civil investigative demand (“CID”) from the U.S. Department of Justice (“DOJ”) requesting the Company produce documents in connection with the DOJ’s False Claims Act investigation; (2) a subpoena from the SEC in relation to matters similar to those identified in the CID and certain accounting and public reporting practices; and (3) an information request from an unnamed state regulatory agency.
Certain officers and directors breached their fiduciary duties by failing to correct and/or causing the Company to fail to correct these false and misleading statements and omissions of material fact. These individuals also willfully or recklessly caused the Company to fail to maintain an adequate system of oversight, disclosure controls and procedures, and internal controls over financial reporting.
If you are a current CareDx shareholder who has held shares since on or before February 24, 2021, you may be able seek corporate reforms, the return of funds expended defending litigation back to company coffers, and a court approved incentive award if appropriate.
If you would like to learn more about this matter at no cost to you, please us at firstname.lastname@example.org or call 267-507-6085.